July 19 (Bloomberg) -- Canadian stocks rose, capping a
fourth straight week of gains for the benchmark index, as an
increase in metals prices boosted materials producers and China
planned to remove the floor on lending rates.

Centerra Gold Inc. added 4.2 percent as the metal’s price
climbed for a second week. Athabasca Oil Corp. jumped 6.7
percent as oil rose to a 16-month high. BlackBerry Ltd. fell 1.3
percent, reversing an earlier rally of as much as 2.2 percent.

The Standard & Poor’s/TSX Composite Index rose 56.28
points, or 0.5 percent, to 12,685.13 at 4 p.m. in Toronto. The
benchmark gauge rallied 1.8 percent for the week. Trading volume
was 8.4 percent below the 30-day average at this time of day.

“Materials, energy and financials are really the main
areas,” said John Kinsey, fund manager with Caldwell Securities
Ltd. in Toronto. He helps manage about $1 billion ($953
million). “There’s a large commodity factor in the Toronto
market. Gold and energy or oil stocks are up and it is nice to
see them following the commodities. Financials have had a nice
run and are pausing a bit today but are still up.”

A government report showed inflation in June quickening for
a second month in June as the prices of gasoline and automobiles
rebounded. The consumer price index rose 1.2 percent from a year
ago following a 0.7 percent gain in May, matching the Bloomberg
economist surveys forecast, Statistics Canada said today from
Ottawa.

‘Subdued’ Inflation

Bank of Canada Governor Stephen Poloz said this week that
inflation will remain below his 2 percent target until mid-2015
and stay “subdued” over the next few months.

The People’s Bank of China said it will remove the floor on
lending rates offered by financial institutions starting
tomorrow. The announcement builds on pledges by Premier Li
Keqiang to expand an overhaul of interest rates, a development
the World Bank says must be a priority in reform of the
financial system.

Four of 10 groups in the S&P/TSX advanced, led by a 2
percent gain among producers of raw materials.

Centerra Gold added 4.2 percent to C$4.27 and Detour Gold
Corp. increased 6.7 percent to C$10. The price of the metal rose
0.7 percent to $1,294 an ounce in New York. Silver and copper
also advanced.

Athabasca Oil jumped 6.7 percent to C$7 and Penn West
Petroleum Ltd. gained 6.3 percent to C$12.91. Oil was up 1 cent
to $108.05 a barrel after climbing as much as 1.2 percent.

Financial shares rose 0.2 percent for the fourth gain in
five sessions. The S&P/TSX Commercial Banks Index rose for the
seventh straight day to trade near a record high.

BlackBerry dropped 1.3 percent to C$9.30. The stock was up
as much as 2.2 percent after BMO Capital Markets analyst Timothy
Long upgraded his rating from underperform to market perform, an
equivalent of hold. Long said the stock had less downside after
plunging 38 percent since June 27, the day before the company
reported disappointing sales.